Olympus 2005 Annual Report Download - page 17

launch next-generation digital SLR cameras based on new design
concepts in the digital SLR camera market, which is expanding at
an accelerating pace around the world. At the same time, O lympus
will promote the proliferation and commercialization of the Four
Thirds System specifications while increasing the number of mem-
ber companies participating in the standard.
Film Cameras
>Sales of film cameras to taled ¥15,849 million (US$144 million), a
decline of 4 5.6% from the previous fiscal year. In May 2004,
O lympus released the μ[mju:]-III 135 (μ-III 1 3 5 in Europe) camera
featuring a 3.6x-zoom lens, slim body, and the “Beautiful Skin
Tone” mode that enhances skin tone. Though we maintained our
number one share of the world market for compact cameras, sales
of film cameras continued their considerable decline from the pre-
vious fiscal year, owing to persistently falling prices in a shrinking
domestic market and tremendous growth in digital cameras in over-
seas markets.
Voice Recorders
>Sales of voice recorders were down 4 .1 % from the previous fiscal
year to ¥1 2,808 million (US$116 million). Sales were favorable
for the popularly priced Voice-Trek VN series (VN series in the U.S.
and Europe), which we released in March 2 0 0 4 . However, an
influx of low-priced products from overseas and the emergence of
portable audio players with built-in voice recording functions threw
our user base off balance, and sales fell as a result. O verseas,
sales declined due to lower prices.
O LYMPUS 20 05 15
μ-mini DIGITAL S
DIGITAL CAMERA
The μ-mini DIGITAL S
offers better image res-
olution and functionali-
ty than the μ-mini
DIG ITAL, while retain-
ing its water-resistant
design.
V-2 0 DIGITAL
STEREO
RECO RDER
The Voice-Trek V-20 IC
reco rder can be direct-
ly connected to a PC
via USB and can also
store documents and
image files.
Digital Cameras
>Sales of digital cameras edged down 2.1% to ¥249,028 million
(US$2,264 million).
Shipments of digital cameras reached 60.3 million units world-
wide. O lympus shipped 8.9 million digital cameras, maintaining
its 14.7% share of the world market.
In fiscal 2005, O lympus concentrated efforts on launching prod-
ucts under the new concept “New Photo Life Solution,” centered on
the i:robe (IR-Series in the U.S. and Europe) series of digital cam-
eras that easily connect to storage devices and printers, and the
m:robe series of HDD digital audio players that offer a fusion of
music and images. In autumn 2004, we unveiled the μ[mju:]-mini
DIG ITAL (Stylus Verve in the U.S.) compact digital camera featuring
a sleek dew-drop design, and in the winter the E-300 (EVO LT E-300
in the U.S.) digital single-lens reflex (SLR) digital camera in an
affordable price range. Both of these new products were hits
among consumers. However, O lympus lagged behind mainstream
market trends in Japan and was late to introduce high-resolution,
thin-body, large-screen digital cameras. Moreover, co mpetition
heated up as home appliance companies entered the fray. As a
consequence, we were taken off guard by the pace of decline in
prices centered on compact cameras. As a result, higher sales from
robust demand in European and Asian markets were unable to
compensate for declines in Japan, leading to a year-on-year
decrease in sales for the Imaging Systems Business.
In the digital SLR camera market, which is expected to grow con-
tinuo usly, O lympus signed an agreement with Matsushita Electric
Industrial Co., Ltd. in January 2005 for the joint development of a
digital SLR camera based on the Four Thirds System, a set of stan-
dards for digital SLR cameras with interchangeable lenses. Through
the joint development of relevant elemental techno logies and key
devices, O lympus and Matsushita Electric Industrial Co., Ltd. will
systems